The idea of advanced business education is to heighten and magnify understanding of facts and their relationships, develop and evaluate concepts and practices in order to achieve something new or more efficient.

The news from Duke University about a cheating scandal in the business school, brings to mind some very serious questions about MBA programs and continuing business education.

Who is going to business school to learn and who is going to get the title?

How important is it for companies to have employees that are/were first in their class, or in the top 20?

How should an MBA business school react to cheating?

MBA candidates and graduate business students are the “top of the line” future leaders and managers of business in the future. What messages are we sending about morals and ethics in our society when cheating is tolerated, lightly punished or severely punished?

Is this a sign of failure of the school, failure of the students, or the reality that shortcuts and cheating are required in order to get ahead in our current business environment?

There are a number of reasons why individuals and organizations refuse to perform in an ethical manner or raise their voice against unethical behaviour.

6 Reasons why we don’t object to unethical actions or behaviour.

1. Ignored and Ostracized. We will be eliminated from the “group”. Showing opposition to an idea that was created by someone with power or the power of persuasion can result in being ignored and left out of future decision-making.

2. Fear. Not on board with the company philosophy? You might get fired. Fear of unfavorable personal consequences.

3. Demoted. Will lose power, prestige, and income if you speak up or oppose the idea or practice.

4. Insecurity. Perhaps we are not sure if the means justify the ends. Inability to clearly see the situation as unethical or wrong.

5. Reward. We see a payoff (money, power, prestige) that overwhelms our sense of ethics. Justifying wrong in order to receive personal gain.

6. Lazy or uncommitted. Unwilling or unable to challenge the group or idea.

5 Reasons why we should speak up and question unethical actions or behaviour.

1. Be true to yourself. Stand up for your own beliefs.

2. Be a leader. Others in the group might believe the same thing, but are timid or afraid of voicing objections. Create a dialogue and open a discussion of the issues.

3. New point of view. The group might not have thought of the consequences, or not see the situation as an ethics related decision. Open their eyes.

In fact they seem to be words right out of a fairy tale. Words and concepts that have faded away with the modern world and it’s complexity.

Perhaps it’s not cool to be labeled as virtuous, moral or ethical.

Is it because we live in a complicated world that has us making more decisions about the “gray areas”?

We don’t read about organizations being ethical or noble. In fact we hear about unethical companies and employees much more often.

Business magazines doesn’t write front page articles about virtuous executives and CEO’s (I hope this is because it’s not popular and not because there aren’t any).

Are there any reasons to promote and reinforce these values in your organization?

Are there good reasons to avoid discussion of them?

Perhaps the fact that unethical behaviour is reported, and considered scandalous, is a clear signal that it is outside of “normal” business conditions and draws attention.

Let’s begin with definitions, that should clear up some of the confusion.

Moral – Conforming to a standard of what is right and wrong, correct, trustworthy. How could anyone want to work with others who don’t know right from wrong and behave?

Ethical – Principles of conduct governing an individual or group, a set of moral values, a guiding philosophy, decent, respectable. OK, this one sounds like it should be part of the package too.

Noble – Moral eminence and freedom from anything mean, petty or dubious in conduct and character. In simple terms doing the “right thing” all the time, excellence. If it looks bad, don’t do it…pretty good advice and words to live by.

Virtuous – Implies moral excellence in character. Not only knows good from bad, and adheres to it, but is exemplary in their behaviour and practice of their beliefs, honest, good, without reproach. I can’t find any customer, shareholder or employee who wouldn’t want their company to be virtuous.

Which of the terms can your company live without in their employees?

Are any of these characteristics that should be found and promoted in your management and leadership?

Which of these concepts and behaviours are important to you, your customers and your organization now and in the future?

Do you have a written policy in place to promote, identify, and create noble employees and a virtuous organization?

Do you point out and recognize when a person or organization has done something noble, virtuous or ethical?